Council of Australian Governments | |
Successor | National Cabinet [1] |
---|---|
Formation | 1992 |
Dissolved | 29 May 2020 [1] |
Type | Governmental organisation |
Purpose | Management of matters of national importance to Australia [2] |
Region | Australia |
Membership | [2] |
The Council of Australian Governments (COAG) was the primary intergovernmental forum in Australia from 1992 to 2020. [3] Comprising the federal government, the governments of the six states and two mainland territories and the Australian Local Government Association, it managed governmental relations within Australia's federal system within the scope of matters of national importance.
On 29 May 2020, Prime Minister Scott Morrison announced that COAG would be replaced by a new structure based on the National Cabinet implemented during the COVID-19 pandemic. [1]
COAG grew out of the Premiers' Conferences, which had been held for many decades. These were limited to the premiers of the six states and the Prime Minister. A related organisation is the Loan Council, which coordinates borrowing by the federal and state and territorial governments of Australia.
COAG was established in May 1992 after agreement by the then Prime Minister (Paul Keating), premiers and chief ministers, and it first met in December 1992. It was chaired by the Prime Minister. It met to debate and co-ordinate government activities between the federal and state or territorial governments and between the state and territorial governments themselves as well as issues affecting local government.
COAG differed from the United States' National Governors Association or Canada's Council of the Federation, because these bodies only include state/provincial representatives, whereas COAG also included federal and local representatives.
At a COAG meeting on 13 March 2020, it was announced that a new National Cabinet was being formed of the Prime Minister and the premiers and chief ministers of the states and territories to coordinate the response to the COVID-19 pandemic in Australia. [4]
On 29 May 2020, Prime Minister Scott Morrison announced that COAG would be replaced by a new structure based on the National Cabinet. [1]
Name | Office held | In office since | Party | |
---|---|---|---|---|
Scott Morrison MP | Prime Minister of Australia | 24 August 2018 | Liberal | |
Gladys Berejiklian MP | Premier of New South Wales | 23 January 2017 | Liberal | |
Daniel Andrews MP | Premier of Victoria | 4 December 2014 | Labor | |
Annastacia Palaszczuk MP | Premier of Queensland | 14 February 2015 | Labor | |
Mark McGowan MLA | Premier of Western Australia | 17 March 2017 | Labor | |
Steven Marshall MP | Premier of South Australia | 19 March 2018 | Liberal | |
Peter Gutwein MHA | Premier of Tasmania | 20 January 2020 | Liberal | |
Andrew Barr MLA | Chief Minister of the Australian Capital Territory | 11 December 2014 | Labor | |
Michael Gunner MLA | Chief Minister of the Northern Territory | 31 August 2016 | Labor | |
Mayor David O'Loughlin | President of the Australian Local Government Association [5] | November 2016 | Labor |
Australia is believed to be the first federation to have introduced a formal system of horizontal fiscal equalisation (HFE) which was introduced in 1933 to compensate States which have a lower capacity to raise revenue. Many federations use fiscal equalisation to reduce the inequalities in the fiscal capacities of sub-national governments arising from the differences in their geography, demography, natural endowments and economies. However the level of equalisation sought varies. In Australia, the objective is full equalisation.
Full equalisation means that, after HFE, each of the six states, the Australian Capital Territory and the Northern Territory would have the capacity to provide services and the associated infrastructure at the same standard, if each state or territory made the same effort to raise revenue from its own sources and operated at the same level of efficiency.
Currently the funds distributed to achieve HFE are the revenues raised from the Goods and Services Tax (GST), currently about AUD50bn a year. The distribution of GST required to achieve HFE is decided by the Federal Treasurer each year, on the basis of advice provided by the Commonwealth Grants Commission (CGC).
Achieving HFE does not mean that the states and territories are directed how to raise revenue or how to spend their funds. GST revenue grants from the Commonwealth are unencumbered and available for any purpose. Accordingly, HFE equalises fiscal capacity, not fiscal policies which remain for the states and territories to decide for themselves. It does not result in the same level of services or taxes in all states and territories, direct that the states and territories must achieve any specified level of service in any area, nor impose actual budget outcomes in accordance with the Commission's calculations. [6]
At its meeting on 13 December 2013, COAG agreed to streamline the COAG council system and refocus on COAG's priorities over the next 12 to 18 months. The reforms led to a removal of the distinction between standing and select councils. [7]
At its dissolution, there were twelve COAG councils:[ citation needed ]
The COAG Reform Council was established in 2010 as an independent body to advise on reforms of national significance. It was disestablished in 2014. [8] [9]
In 2012 a group of 20 environmental organisations released a joint communiqué denouncing the establishment of the COAG Business Advisory Forum and wanted wider representation on the Forum. The groups also opposed the weakening of environmental regulations. [10]
After the forum's abolition in early 2020, journalist Annabel Crabb wrote that, after initial utility in the 1990s, COAG had become a "sclerotic nightmare" producing "communiques of impenetrable bureaucratese". She suggested that the meetings in Canberra had produced a performative element in which state premiers sought to boost their profile at the expense of actual reforms. [11]
The Liberal Party of Australia is a centre-right political party in Australia, one of the two major parties in Australian politics, along with the centre-left Australian Labor Party. It was founded in 1944 as the successor to the United Australia Party.
Equalization payments are cash payments made in some federal systems of government from the federal government to subnational governments with the objective of offsetting differences in available revenue or in the cost of providing services. Many federations use fiscal equalisation to reduce the inequalities in the fiscal capacities of sub-national governments arising from the differences in their geography, demography, natural endowments and economies. The level of equalisation sought can vary, however.
The premiers and chief ministers of the Australian states and territories are the heads of the executive governments in the six states and two self-governing territories of Australia. They perform the same function at the state and territory level as the Prime Minister of Australia performs at the national level. The Queen of Australia and the state governors are the formal repositories of executive power; however, in practice they act only on the advice of state premiers and ministers except in extreme circumstances, such as a constitutional crisis.
The Cabinet of Australia is the chief decision-making organ of the executive branch of the government of Australia. It is a council of senior government ministers, ultimately responsible to the Federal Parliament.
Goods and Services Tax (GST) in Australia is a value added tax of 10% on most goods and services sales, with some exemptions and concessions. GST is levied on most transactions in the production process, but is in many cases refunded to all parties in the chain of production other than the final consumer.
The Australian Government, also known as the Commonwealth Government, is the national government of Australia, a federal parliamentary constitutional monarchy. Like other Westminster-style systems of government, the Australian Government is made up of three branches: the executive, the legislative, and the judicial.
Colin James Barnett is a former Australian politician who was the 29th Premier of Western Australia. He concurrently served as the state's Treasurer at several points during his tenure and had previously held various other portfolios in Western Australia's Court–Cowan Ministry.
Federalism was adopted, as a constitutional principle, in Australia on 1 January 1901 – the date upon which the six self-governing Australian Colonies of New South Wales, Queensland, South Australia, Tasmania, Victoria, and Western Australia federated, formally constituting the Commonwealth of Australia. It remains a federation of those six "original States" under the Constitution of Australia.
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The Commonwealth Grants Commission is an Australian independent statutory body that advises the Australian Government on financial assistance to the states and territories of Australia under section 96 of the Australian Constitution. The Commission was established in July 1933 by the Lyons Government during the Great Depression to provide impartial advice on the distribution of federal government grants to the states. The Commission operates under the Commonwealth Grants Commission Act 1973, and is responsible for measuring the relative fiscal capacity of each state and territory.
The Minister for Infrastructure, Transport, Regional Development and Local Government in the Government of Australia is a position currently held by following the swearing in of the full Albanese ministry on 1 June 2022.
The fiscal imbalance in Australia is the disparity between the revenue generation ability of the three levels of governments in Australia relative to their spending obligations; but in Australia the term is commonly used to refer more specifically to the vertical fiscal imbalance, the discrepancy between the federal government's extensive capacity to raise revenue and the responsibility of the States to provide most public services, such as physical infrastructure, health care, education etc., despite having only limited capacity to raise their own revenue. In Australia, vertical fiscal imbalance is addressed by the transfer of funds as grants from the federal government to the states and territories.
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National Cabinet is the Australian intergovernmental decision-making forum composed of the prime minister and state and territory premiers and chief ministers. Originally established on 13 March 2020 in response to the COVID-19 pandemic, National Cabinet replaced the now-defunct Council of Australian Governments (COAG) as the primary intergovernmental forum on 29 May 2020, citing excessive bureaucracy and infrequent meetings. National Cabinet is composed of the main forum, and specialised committees focusing on: rural and regional Australia, skills, infrastructure, health, transport, population and migration, and energy.
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